Retail Eyes: Tariffs drive mobile switching

22 March 2007

More than a quarter of the people who renewed a mobile phone contract last year switched providers, research from Retail Eyes has found.

The vast majority of these customers were lured by the promise of a better tariff, with 73 per cent of customers citing cheaper bills as their primary reason for switching.

Customer service was the second most important driver although it impelled just nine per cent of customers.

"Although pricing is the biggest influencer in making a decision about a new mobile, customer service is a big enough influencer that providers and retailers need to take notice," commented Retail Eyes' marketing director Tim Ogle.

Functionality was the top factor determining customers' choice of the provider they switched to, affecting 54 per cent, while slightly fewer (51 per cent) were influenced by price.

But retailers may find customers' immunity to advertising a matter for concern as only four per cent of switchers said they were influenced by advertising in their choice of new provider.

Moreover, 28 per cent were so irritated by the over-eager customer sales executives their first provider employed that they decided to move on as a result.